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Capital Reduction — The process of decreasing a company s shareholder equity through share cancellations and share repurchases. The reduction of capital is done by companies for numerous reasons including increasing shareholder value and producing a more efficient… … Investment dictionary

capital reduction — (decrease in value) Euroclear Clearing and Settlement glossary Reduction of the share capital and face value of a single share. The number of the circulating shares remains unchanged. This may include a capital pay out to shareholder. Euroclear… … Financial and business terms

reduction of capital — a company s capital may be lawfully reduced in two ways: (1) by extinguishing or reducing the liability of its members on any uncalled capital; or (2) by repaying to them the nominal value of their shares. Where a company has suffered losses, it… … Law dictionary

capital redemption reserve — Under Chapter VII of Part V of the Companies Act 1985, a company can redeem shares which are issued as redeemable shares by repaying the nominal value to the shareholder, whereupon the shares are cancelled. Redemption must normally be from… … Law dictionary